Stocks extended their winning streak for the four straight weeks that ended Thursday as investors remained buoyant in the market amid growing optimism.
The week witnessed three trading sessions like previous one as the market remained closed from July 15 to July 20 on the occasion of Eid-ul-Fitr. During the three sessions' long-week, the market saw staggering gains in all three trading sessions.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,800-mark and settled the week at 4,808.40, gaining 152.26 points or 3.27 per cent.
The two other indices also closed higher. The DS30 index, comprising blue chips, rose 67.96 points or 3.73 per cent to end at 1,888.84. The DSE Shariah Index gained 67.96 points or 3.73 per cent to close at 1,195.22.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - moved up by 252 points or 2.88 per cent to close the week at 8,965.25.
The upbeat created much attraction among the participants and gravitated additional funds from the sideline. The total turnover for the week stood at Tk 20.22 billion against Tk 15.68 billion in the week before.
The daily turnover for the week averaged Tk 6.74 billion, registering an increase of 29 per cent over the previous week's Tk 5.23 billion.
The participants kept their focus concentrated on pharma, power and engineering - the sectors that accounted for 20 per cent, 19 per cent and 15 per cent of the week's total turnover respectively.
"As political frontier is almost silent and economy in a position to reap the benefit of a smooth work environment, investor became hopeful for the days ahead," said IDLC Investments, a merchant bank, in its weekly analysis.
In addition, with the end of June, declarations of June year ending companies fell due and played a major role in security pricing partnered with quarterly declarations from other companies, said the merchant bank.
Keeping in line, the market passed a spectacular week. In last nine sessions' gaining streak DSEX accumulated around 282 points or 6.2 per cent gain, said the merchant bank.
LankaBangla Securities, a stockbroker, said, "Stable economic and political outlook, coupled with better expected corporate earnings fueled the buying spree".
The stockbroker noted that at this point market is perceived to get some solid direction which induced investors to go long on stocks with better prospects in coming days.
Cement, pharma and banking stocks were in the preferred list of investors last week. Last week, cement, pharma and banking stocks registered 7.24 per cent, 4.9 per cent and 4.6 per cent gain respectively.
International Leasing Securities, a stockbroker, said, "Announcement of favourable corporate declaration also fueled the buying pressure during the session amid increased participation".
Sustained positive momentum and optimism regarding market sentiment in the stable macro-economic and political front helped the investors to inject fresh funds into the market, said the stockbroker.
Most of the sectors enjoyed gain last week. The major gaining sectors were cement 7.24 per cent, tannery 6.42 per cent, NBFI 6.34 per cent and general insurance 5.73 per cent.
The major losing sectors were telecommunication and service and real estate, losing 101 per cent and 0.45 per cent respectively.
The gainers took a strong lead over the losers as out of 323 issues traded, 208 advanced, 86 declined and 29 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up by 2.61 per cent as it was Tk 3,303.90 billion on the opening day of the week and it stood at Tk 3,390.12 billion on closing day of the week.
Two listed companies - GrameenPhone (GP) and Square Pharmaceuticals-- recommended dividend last week. GP recommended 80 per cent interim cash divided while Square Pharma recommended 30 per cent cash and 12.5 per cent stock dividend.
Lafarge Surma Cement was the week's top turnover leader with shares worth above Tk 1.39 billion changing hands during the week followed by Shahjibazar Power, ACI, Square Pharma and GP.
Islami Bank Bangladesh Ltd was the week's best performer, posting a rise of 32.37 per cent while Prime Islami Life Insurance was the week's worst loser, plunging by 12.85 per cent.
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